End MESSA's stranglehold

January 29, 2004

The Mackinac Center for Public Policy is on to something with its latest criticism of the Michigan Education Special Services Administration, better known to many as MESSA.

MESSA is the provider of health insurance for most teachers and other employees in the state's public school districts, and as such has over the years used its special relationship with one of the state's most powerful union, the Michigan Education Association (MEA) to assure itself market share.

Now, there's nothing wrong with that per se - if we weren't talking about public tax dollars here.

Each year, MESSA's insurance costs school districts statewide an estimated $400 million per year more than they would otherwise pay, based on an evaluation by Paul Kersey of the Mackinac group. In these tight times, that money sure could come in handy for school districts facing cuts.

That's right - school districts don't have to bid out their health insurance for employees, which could conceivably drive down its cost considerably.

Advertisement

But MESSA has a stranglehold on the MEA. Any Michigan school board that considers insurance other than MESSA must be prepared to face at least the threat of a strike, the Mackinac group contends. And we believe it. With the MEA and MESSA in cahoots together, the union will wield its power however it has to, particularly when it comes to its health care.

But the Mackinac Center doesn't just cite supposition, it offers examples. For instance, four Grand Rapids area districts that had proposed teachers contribute at least a portion of the cost of their health care - typical in most other non-public industries - now face a possible illegal strike, currently under organization by the MEA.

This is a ridiculous abuse of the public trust. It's time for districts to consider breaking MESSA's grip on their pocketbooks and look elsewhere for insurance. Put the pressure on the MEA, not the taxpayer.

The Michigan Legislature should also consider drafting legislation requiring school districts to solicit bids on health care coverage. As the Mackinac Center summarizes, it could free up education dollars to be spent the way they should be - educating Michigan's children.